NASDAQ$EA

Electronic Arts Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced preliminary financial results for its fiscal fourth quarter and full year ended March 31, 2020

Electronic Arts reported a strong Q4 and full year FY20, with digital net bookings representing 78% of total net bookings for the fiscal year. FIFA 20 has more than 25 million unique players to date, and Madden NFL 20 reached the highest engagement levels in franchise history.

  • Digital net bookings for the fiscal year was $4.052 billion, up 9% year-over-year.
  • FIFA 20 has more than 25 million unique players to date.
  • Madden NFL 20 reached the highest engagement levels in franchise history.
  • Apex Legends was the most downloaded free-to-play game on PS4 in calendar 2019.

Headline financials

Total Revenue

$1.39B

Previous: $1.36B+1.7%
EPS (adj)

$1.08

Previous: $1.31-17.6%
Net Bookings

$1.21B

No prior period
Net Income

$418M

Previous: $209M+100.0%
Operating Income

$401M

Previous: $196M+104.6%
Gross Profit

$1.12B

Previous: $962M+16.2%
Cash & Equivalents

$3.77B

Previous: $4.71B-20.0%
Total Assets

$11.1B

Previous: $8.96B+24.1%
Stock-Based Comp

$91M

Previous: $73M+24.7%

Revenue & EPS history

EA · Revenue · Quarterly

$1.39B

Q4 2020+1.7%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

EA · $379M total across 2 segments · Q4 2020

  • Full Game Downloads
    $211M
  • Packaged Goods
    $168M

Forward guidance

Electronic Arts provided financial guidance for Fiscal Year 2021, expecting net revenue of approximately $5.525 billion and net income of approximately $978 million.

Tailwinds

  • Net revenue is expected to be approximately $5.525 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $25 million.
  • Net income is expected to be approximately $978 million.
  • Diluted earnings per share is expected to be approximately $3.35.
  • Operating cash flow is expected to be approximately $1.575 billion.

Headwinds

  • Continued disruptions, postponements or cancellations of sports seasons and sporting events around which the Company seeks to launch games and provide live services.
  • Worsening economic conditions that negatively impact discretionary consumer spending and consumer demand.
  • The closure of several of the Company’s key locations, including its global headquarters in Redwood City, California and key studios across North America, Europe and Asia which could impact (1) the Company’s ability to meet product and live service development schedules, (2) the effectiveness of the Company’s quality controls and game testing measures, and (3) the Company’s ability to conduct normal business operations.
  • The inability of third-party developers with whom the Company has partnerships to meet product development schedules.
  • Sustained closures of the physical stores of key retail partners and deterioration in the financial condition of such retail partners.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+1.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+18.0%

Q4 2014

Best reaction

-9.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.1%-0.7%+0.7%
Q3 2026-1.2%-0.3%-1.7%
Q2 2026-0.1%-0.2%+0.9%
Q1 2026+0.0%+3.6%+9.5%
Q4 2025+0.6%-3.4%-3.2%
Q3 2025+7.6%+8.9%+15.5%
Q2 2025+3.4%+4.9%+13.1%
Q1 2025+2.1%+0.7%+1.6%
Q4 2024-4.1%-2.6%+5.2%
Q3 2024-0.7%-1.4%+0.6%
Q2 2024+3.6%+4.4%+11.3%
Q1 2024-7.4%-10.1%-12.0%
Q4 2023-0.8%-0.2%+1.1%
Q3 2023-9.5%-11.7%-12.9%
Q2 2023+2.1%+3.0%+4.5%
Q1 2023+1.8%+1.3%-2.4%
Q4 2022+7.5%+11.5%+21.2%
Q3 2022+3.4%+3.8%-3.6%
Q2 2022+1.6%-1.4%-10.6%
Q1 2022-2.1%-2.6%+4.9%
Q4 2021-0.7%-1.4%+3.6%
Q3 2021-3.5%-3.2%-10.0%
Q2 2021-4.9%-5.1%+2.7%
Q1 2021+4.2%+7.6%+3.6%
Q4 2020-1.3%-0.2%+0.3%
Q3 2020-3.8%-4.6%-9.7%
Q2 2020+0.0%-1.5%+4.2%
Q1 2020+4.1%+4.5%+4.7%
Q4 2019+0.1%+0.1%+2.8%
Q3 2019-9.3%+10.4%+12.4%
Q2 2019-0.2%+1.4%-5.3%
Q1 2019-8.7%-12.1%-12.0%
Q4 2018+5.7%+7.2%+10.5%
Q3 2018+7.9%+5.8%+3.8%
Q2 2018-2.6%-3.7%-9.6%
Q1 2018+0.2%-0.9%-0.9%
Q4 2017+13.0%+14.0%+19.4%
Q3 2017-1.0%-3.1%+3.8%
Q2 2017+0.8%+2.2%-3.7%
Q1 2017+2.6%+4.2%+6.7%
Q4 2016+13.7%
Q3 2016-7.1%
Q2 2016-6.1%
Q1 2016-0.9%
Q4 2015+2.7%
Q3 2015+10.4%
Q2 2015+5.5%
Q1 2015-6.2%
Q4 2014+18.0%
Q3 2014+3.1%
Q2 2014+4.7%
Q1 2014+5.8%
Q4 2013+17.9%
Q3 2013+5.2%
Q2 2013+3.7%
Q1 2013+4.0%
Q4 2012+1.1%
Q3 2012-4.0%
Q2 2012-6.0%
Q1 2012+2.5%
Q4 2011+1.7%
Q3 2011+0.4%
Q2 2011+0.0%
Q1 2011-2.2%
Q4 2010-3.8%
Q1 2010-1.8%

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